Revocable living trust benefits in New York are considerable, and far too many people overlook this option. They have been led to believe that a simple will is the best asset transfer method to use unless your estate is very complex. In reality, this is simply not the case.
In this post, we will look at living trust benefits in NY to give you a better understanding of the options that are available.
Total Control
One of the misconceptions about trusts is the idea that you lose control of assets that you convey into any type of trust. Actually, you retain complete control when you establish a revocable living trust. You would be the trustee while you are living, and you would have total access to the resources.
Along the way, you can convey additional property into the trust, and you can amend the terms if you choose to do so. Plus, the “revocable” designation is quite literal. If you want to revoke the trust entirely and take back direct personal possession of the assets, you are free to do so.
Successor Trustee
When you are drawing up the trust agreement, you name a successor trustee to handle the administration tasks after you are gone, and you list your heirs as beneficiaries. One of the benefits of a living trust is the ability to prepare for possible incapacity.
You can give the successor trustee the power to manage the trust if you become unable to handle your own affairs at some point. This is not a pleasant subject contemplate, but over 30 percent of people 85 years of age and older contract Alzheimer’s disease.
Add in the fact that Alzheimer’s is not the only underlying cause of cognitive impairment, and you can see that incapacity is relatively common.
Spendthrift Protections
The inheritors that are named in a simple will receive lump-sum inheritances. This can be a cause for concern if you are leaving resources to someone that is not ready to handle them. There are also people that have demonstrated poor money management capabilities in the past.
When you have a living trust, you can include a spendthrift provision. After your death, the trust will become irrevocable, and the beneficiaries will not have direct access to the assets. Their creditors would “step into their shoes,” so they would not be able to reach the assets either.
With regard to the distributions, you can dictate terms. For instance, you can instruct the trustee to distribute the earnings that are generated from invested assets broken up into monthly increments. This is an example, but you have freedom with regard to the way the assets will be distributed. A living trust can remain active for up to 21 years.
Probate Avoidance
When a will is used to transfer assets, it will be admitted to probate. In New York, this process takes place under the supervision of the Surrogate’s Court. No inheritances are distributed while the estate is being probated, and it will take about nine months if there are no complications.
This is one of a number of different probate drawbacks. On the other hand, when you have a living trust, the trustee can distribute assets to the beneficiaries outside of probate. As a result, there is no court involvement, and this simplifies and streamlines the process.
Shared Living Trust for Married Couples
A living trust can be an ideal estate planning device for some married couples. If you own a lot of property jointly with your spouse, and you intend to leave your respective interests to each other, a living trust can work out perfectly. After the death of one spouse, the survivor would become the sole trustee, so there is continuity.
Schedule a Consultation Today!
Our doors are open if you are ready to work with in Manhattan, NY estate planning lawyer to take advantage of the benefits of a living trust. You can call us at 212-973-0100 to set up a consultation appointment, and you can use our contact form to send us a message.
While he was in law school, he worked as an aide to the late John Sparkman, Senior Senator from Alabama. This gave him the opportunity to gain intimate knowledge of the workings of government, and this background has served him well.
He started his private practice in New York in 1974, the first Sikh to be admitted to the bar in the state of New York.And in 1995, when he narrowed his legal focus to the areas of estate planning and elder law, the prestigious American Academy of Estate Planning Attorneys accepted him into their membership.
Special needs planning is an important aspect of the field, and Mr. Khalsa has intertwined his empathy with his expertise to become a leading advocate in this area. Shortly after the Education for All Handicapped Children Act was enacted in 1975, he won the first case in New York that was adjudicated under this law.
S.J. Khalsa has a penchant for philanthropy, and he has raised well over $20 million for charities nationwide. He is a deeply spiritual man who represents the Sikh religion at religious and interfaith gatherings all over the globe.
He believes that successful professionals should contribute to the fabric of their communities, and to this end, he works with law enforcement in New York.
Mr. Khalsa is a graduate of the FBI Citizens Academy program, and he is active in their Alumni Association. He is a member of the FBI/New York Police Department Joint Task Forces on Civil Rights and Hate Crimes, and he sits on the Community Engagement Council that advises the FBI Assistant Director for New York.
He is the author of the highly acclaimed book, Estate Planning Essentials: A Guidebook for Modern Families. Lawyers of Distinction recognized him for his excellence in 2020, naming him a 2020 Power Lawyer, and he is a member of the prestigious American Academy of Estate Planning Attorneys.
Mr. Khalsa lives in Manhattan with his wife, and he has two grown children and four grandchildren. He likes to travel, and he is an avid golfer. As the co-owner of Kundalini Yoga East in New York along with his wife, he instructs practitioners and aspiring yoga teachers.
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